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Written by Alan Colley, founding member of Host2Host and Fire Lookout host in Tiller, OR Hello fellow hosts!
At the founding of Host2Host, we committed to keeping our eyes on upcoming trends that likely would impact your short-term rental business. Here is some information that you may not have seen.
First off, just what is a “weak signal”? My good friend and futurist, Rebecca Ryan, founder and president of NEXT Generation Consulting, Inc. puts it this way. “A weak signal is the first indicator of a change or an emerging issue that may become significant in the future. Monitoring for weak signals is critical to preparing for the future.”
Have you listened to the winds of change? Ever put your ear to the proverbial ground and predicted some of the changes coming around the bend? Futurist Rebecca Ryan and her cohorts do just that for a living. She tunes into the news and murmurings from the broader business community and predicts the future.
Of the five weak signals Rebecca and her panel of futurists have identified for 2023, there are two which I believe have particular bearing on those of us who have short-term rentals - the environment, and the shift in work patterns. Dig deeper into their observations here.
Labor - Unionization, talent shortage, work patterns From Rebecca’s post: The permanent adoption of work-from-home programs decreases central business district (CBD) office occupancy rates by 30% or more. (Gulp) This reduces tax revenues and creates downtowns that are bustling only on Tuesdays, Wednesdays, and Thursdays as well as the Donut Effect, which drives up suburban home prices around large cities. This has planning, zoning, and redevelopment implications. Will downtowns become neighborhoods? Can Home Owner Associations (HOAs) prohibit residents from working full time from their residences? Will employees who injure themselves while working from home be able to file Workers Comp claims?
In Portland, we are definitely seeing the fallout from these policies. Our vacancy rate in the Central Business District now stands at 26%, the highest in recent history. Businesses, declining to renew leases in the central district combined with those employees choosing to work remotely have big impacts on the future of cities as we have come to know them. It’s distinctly possible that permitting and tax regulations will be given new scrutiny as the revenues begin to dry up. Like many cities across the country, Portland is making efforts to draw folks back by reframing the CBD as an entertainment district through events like the Portland Winter Festival of Lights from February 3-11th.
Environment - Protection, quality, pollution, waste disposal There are a number of sub-signals under this one. Climate change is a high priority, of course, but waste and pollution get serious attention, too. Regarding extreme weather events, the best thing hosts can do right now is to be prepared. Do all in your power to keep guests safe and comfortable if and when they happen. Create an emergency plan, stock up with the essentials both for yourself and for the folks staying at your rental. Communicate with guests when bad weather is in the forecast to be sure they know the best way to be ready during a severe weather event should it come your way.
These days it makes sense for all of us to pay attention to consumables and how we dispose of waste. We may not be perfect at it, but anything in that direction can only benefit us all.
These signals may not sound like good news on the surface, but I believe that being forewarned is good forearmed, right? As advocates for good regulations for short-term rentals, we are committed to paying attention! If you want to hear more from Rebecca and NEXT Generation Consulting, please check out this link. I think - no - I know you will be energized and inspired. Quotes and comments from “Signals”: Copyright © 2023 by NEXT Generation Consulting, Inc. Used with permission.
Idea contributed by founding member Jill Palamountain & written by Charity Kuahiwinui
Let Me Tell You a Story Did you know folks are still being discriminated against on the major booking platforms both for the color of their skin and the person they love? Imagine, you’re getting super excited about your vacation. You spend hours scrolling through so many awesome rentals debating about which one will suit your needs and finally choose the perfect spot for your getaway. Getting to Know You You are bubbling with excitement as you draft your initial outreach to the host. The rental is on a platform like Airbnb or VRBO, so you know how important it is to provide a good overview of who will be staying in the unit. You introduce yourself and your spouse and let the host know you’ll be the delightful couple staying there. After your uplifting outreach, you definitely don’t expect the response you get! A Slap in the Face Instead of welcoming you with open arms, they trash your relationship and deny your request because they realize you are in a queer relationship. You are devastated. This exchange will undoubtedly sour not only your vacation but your view of other short-term rental hosts making it hard for you to rely on these types of services again. Creating a Safe Space Robert Geller, FabStayz founder, is hoping to change this experience and help create happy memories. His booking platform of 5,000+ properties and growing supports the LGBTQ community and upends this narrative by providing a safe space for renters. Portland Roots Shine Through Originally launched in Portland, join dozens of other local hosts and expand your marketing approach to target this niche, lucrative community. Host2Host members who join before February 14th, can share the love and get 50% off your membership fee. It’s great too because Host2Host members receive special designations on the site to highlight our enhanced hosting standards! You’ll also find their handy Fab! Food Cart Finder is the perfect tool to increase satisfaction by including the QR code in your house manual or sent to guests when they arrive. Linking to the Travel Portland website - it’s an excellent resource for visitors to the city. It’s time to diversify your marketing efforts with Fabstayz -- offer a safe place of your own!
Your opinions are very important to us and we want to make sure they are factored into our decisions. Last year, our Marketing & Communications Committee requested feedback to help direct organizational efforts in the coming years. Joel Selling, Host2Host member, MarCom committee member and host on the Oregon coast, provided excellent organizational and analytical support to this effort. Members can check out his analysis here. Members were incentivized to respond with the offer of a free annual membership and we’re proud to announce that Esther Saulle-Simek, was the lucky winner! Thanks to everyone who responded.
Our 2022 FUN(d) Raising event could only be successful because of the kindness of our community of donors and the happy participants.
Our sincerest thanks goes to A+W Projects, LLC, Airbnb, Around Portland Tours, A Serious Production, Back to Basics Bookkeeping Service LLC, Becky Burnett, BLOCK ADVISORS, Blue Star Donuts, Boostly, Carlos Rafael Photo, Chris James Cellars, David Boe, Descansa Property Management, Deschutes Brewery, Ensourced, FIX LINENS, Frances Meyers, Grace Vacation Rentals, HostGPO, InnStyle, iTrips, Jill Palamountain, Kim Fitzpatrick, Laura Angyus, Nossa Familia, Oregonshearwater, Pamela Jeanne, Pizza Kat, Portland Bottle Shop, Por Que No?, Proper Insurance, Radious, Ruby Jewel, Slumber Cloud, StayFi, Sweet Haven Rentals, TheJerkyHut.com, Tiny Digs Hotel, TouchStay, and Travel Portland.
Thanks also to folks who gave direct, monetary donations to Host2Host like Adam Windham with Host Financial, Alanna Schroeder, Carlos Camarena, Dabney Tompkins, Joel Selling, Kym Gordon-Cumbo, Linda Elliott, Liz Crowe, Tracie Robinson, and Charity & Maylene Kuahiwinui.
Special thanks, also, to the FUN team volunteers: Anthony, Becky, Carlos, Charity, David, Debi, Jill, Joel, Laura, Lorinda, Nancy, and Pamela.
Submitted by Nancy Stevens, Meetup Committee Member and Host in NW Portland
What a great time at the Host2Host Fun(d) Raiser to celebrate the close of 2022 and welcome the new year! We had an amazing array of items, valued at over $8,000 – available as raffle or auction items – everything from gift cards, food, tours, and, of course, vacation rental listings from Oregon to Florida! In the end, there were more than 30 very happy winners! Holiday greetings were shared in at least six different languages, and guests learned about holiday drinks such as rumchata and Christmas noggin. The biggest challenge seemed to be extending time for the purchase of raffle tickets. But, eventually, Santa brought a much-desired extension, so everyone was able to make the purchases they wanted. While the RallyUp platform required a certain amount of flexibility, by the end of the evening, around $3,500 was raised and a good time was had by all. A few of the big winners were: Heather Goldberg who won three raffle items and two auction items. Diana Gladden, new Host2Host Board Member won a 2-night stay at Whispering Woods in Mt. Hood, graciously donated by fellow Board Member Laura Angyus. Then, we were all happily surprised to receive a special gift for everyone on the call – Alanna Schroeder’s course on starting and optimizing your short-term rental. What a great evening! Thank you to all the donors, sponsors, members, and guests who made this a fun and successful FUN(d) Raiser! Hope to see your smiling face at future Host2Host in-person and online events!
Submitted by Charity Kuahiwinui, Host2Host Executive Assistant, Charter Member, former North Portland host & co-founder of Ensourced a STR consulting firm
Call it what you will, but global financial indicators are projecting a bit of a slump in the coming year. Forecasters predict the United States has a 50/50 chance of avoiding a major financial downturn in the economy for 2023. The rest of the world is showing even less favorable signs and will most likely experience a recession of some sort. Economic Uncertainty As we have observed most recently, during times of uncertainty, job loss, and economic downturn, travel expenditures are one of the first items to be cut from household budgets. Whether or not the R-word comes to fruition, though, it is clear that the short-term rental market has matured. Guests are seeking more from their rental experience than has been offered in the past. Do what you can to meet those changing expectations and capitalize on your assets. Departure Duties Airbnb has acknowledged that guests are tired of the onerous list of check-out responsibilities being asked of them. While departure rules vary wildly, hosts with the highest guest satisfaction seem to ask the least of their guests. Do what you can to set your cleaning crew up for success, then trust them to take care of the things that matter. If you need to increase your cleaning fee to make the duties match the time it takes to complete them, guests seem happier to pay a larger amount with very little required of them at check-out. Hands-On or Off Let’s face it, there are as many different types of travelers as there are hosts eager to welcome them. Some people get really excited about engaging with their host and look forward to intimate conversations, learning the ins and outs of a new environment from their local guide, and building friendships to last a lifetime. Then there’s the introverted folks who, as VRBO has emphasized in their ad campaigns, prefer to enjoy their rental all to themselves without a host "snooping around". Be honest with yourself about your hosting style and define your approach clearly in the listing description. Let potential guests know what to expect from their stay. No doubt there’s a guest who will click with your style. Making Memories Guests are not just looking for a place to stay, they are looking for a once-in-a-lifetime experience. What’s trendy and eye-catching will undoubtedly grab the attention of an eager traveler when they are searching through lists of potential places to stay. Furthermore, in times of economic uncertainty, folks tend to gravitate to staying at places closer to home where they can make new memories with the people they love. Find a way to set your rental apart from others in the area, then take professional photos that capture this vibe effectively. Make good use of the captions on photos to provide listing-scrollers with a strong sense of the memories they will make. Get them excited about staying with you! Like everything else, periods of economic downturn have a beginning, a middle, and most definitely an end. Count on it. In the meantime, take measures to maximize your opportunity for ongoing hosting success.
New members joining in 2023 include Diana Gladden, Kate Simer, and Kim Fitzpatrick. Elected to serve a two-year term, they will join Anthony Rallo, Becky Burnett, Dabney Tompkins, Laura Angyus, and Ryan Tigner on the Board of Directors next year. Hearty THANKS to the new and departing members!
Richard Sima recently contributed an interesting article to The Washington Post called, “Showing gratitude is good for all of us, so why don’t we give thanks more?“ Based on a 2018 study by Amit Kumar, professor of marketing and psychology at the University of Texas at Austin, the study was published in Psychological Science. Researchers found that saying “thanks” can make a world of difference. It builds stronger social bonds helping us feel more connected to other people. And, in this often challenging world full of angst and obligation, isn’t that what really matters? Some folks are hesitant to express gratitude out of fear of judgment or imperfection, so what helps is taking the first step. Don’t overthink it. Just say, “Thanks”. So, to the folks who have been hanging with us in 2022, we just want to say “Thank You”. Thank you for being awesome contributors to our community, for building something out of nothing, for keeping each other in your thoughts, and for helping when and where you can. You are appreciated. That’s right, YOU. We look forward to connecting with you in a brand new year and are sending you love and light!
Who knew that tax experts could be informative and entertaining? We had plenty of both when we were Talking Taxes with the Experts on November 9th.
The expert panelists helping us navigate the complex world of taxes at the November meetup were Eve Davis with In or Out Tax Services, Jaydra Perfetti with Paper Investigator, Pam Knudsen with Avalara, and Stephanie Solomon with Block Advisors. (Stephanie is a meetup pro! She has attended EVERY ONE of our tax meetups for the past eight years! Thank you Stephanie!)
Two of the presenters even offered discounts to Host2Host members who are new clients: Block Advisors and In or Out Tax Services! Just mention that you are a member of Host2Host when you reach out to them.
This meetup has become a regular event for us because significant changes occur in the tax laws every year. Some of the topics discussed by the experts included quarterly occupancy taxes, income reporting, the difference between a contractor vs an employee, payroll taxes, the pros and cons of front loading expenses, Schedule C vs Schedule E requirements, and the Residential Clean Energy Credit (which has increased this year!)
One of the more challenging topics covered was where you file when you live in one state and have an short-term rental in another – the short answer is that you must file in both states if income is earned. As usual, we had a lively, interactive discussion among the participants. And sound advice was offered by the experts including:
Good records are a gift you give to your future self!
Keep square footage for each property for reporting purposes.
Did we mention that the session was entertaining too? We learned that there are three kinds of accountants – those that can count and those that can’t! (haha, get it?!) and why did Sherlock Holmes get audited? He had too many deductions.
This session is so popular we’ve already scheduled our tax meetup for 2023! It'll be November 9th at 5:00 pm! Save the date!
Host2Host members who missed the event can watch a recording on our website.
Submitted by Host2Host Member Renee Moog, a Host in SE Portland
Having dipped my toe back into hosting recently after sitting it out for the last two years - the recent meetup, Re-Opening Your STR, was very timely and rich in hosting tidbits. A panel of active hosts/volunteer members fielded a discussion on topics relevant right now to those like me that are noticing post-pandemic changes such as types of guests, lengths of stays, and even how the economic and social woes we are all experiencing are affecting the general mood of guests.
Cleanings for Longer Term Guests: Most hosts reported having longer-term guests of two weeks to 3 months who are working from STR’s rather than tourists coming for long weekends. This indeed was my recent experience, and I asked the group for ideas on how to handle cleaning and cleaning fees when guests were staying longer and settling in more. We discussed updating house rules to let guests know there would be interim cleaning and discussed options of whether to charge extra or just absorb the extra cleaning cost in exchange for longer occupancy rates.
We ended the night with the exciting news of in-person meet ups on the horizon…. I look forward to even more sharing of ideas and hosting tidbits!
Host2Host members can watch the meetup recording on our website.
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